State Takes Fresh Crack at Mortgages
Fannie Mae and Freddie Mac will participate in a Nevada program that cuts loan balances for certain homeowners who are current on their mortgages and owe more than their houses are worth in what could be a model for other hard-hit states.
Under a pilot program launched Friday, Nevada will use federal housing money to pay down loan balances of eligible borrowers by as much as $50,000. Homeowners will then refinance their mortgages through the Home Affordable Refinance Program, an initiative that allows borrowers with loans backed by Fannie and Freddie to refinance even if they are underwater.
The mortgage-finance companies and their regulator, the Federal Housing Finance Agency, have faced political pressure this year, primarily from Democrats and the Obama administration, to permit principal write-downs. The regulator hasn’t decided whether it will permit principal write-downs on loans backed by the firms using subsidies that the Treasury made available earlier this year.
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Just because the make a law doesn’t change anything.Nevada is a very money based state .Doubt very seriously this will have any effect on what the banks do.Good intentions paved the road to hell ,without any clout to carry through.
Yes, it is now a felony in our fair state of Nevada to commit foreclosure fraud. Let’s see is the banks reform or if ANYONE at any of them are EVER charged. I doubt it. This is a state where money REALLY talks.
All mortgages are fraud, check the first line “for a loan I have “already” received” Huh ? Before you even sign it ? When you sign your name, it becomes a negotiable instrument, they cash it and loan it back to you without telling you what they have done. The banksters have no skin in the game….